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China Vanke to reposition as urban service provider

China Vanke Co. Ltd. is repositioning itself as an "integrated urban development service provider," departing from its traditional business of being a pure play property developer, in order to seek future growth from diversified income resources, the company said.

"The time has passed for Vanke as a developer. We now want to contribute to urban development and to become a service provider," Yu Liang, Vanke's chairman told reporters in a media briefing Dec. 8., according to a same-day report on China's Securities Times.

Yu also stressed that Vanke does not want to be called a property developer any longer despite being the second largest homebuilder in China, as the company has been making an effort to transform itself into an urban development service provider in the past five years.

Further elaborating on the company's future strategy, Tony Liu, Vanke's public affairs senior manager, told S&P Global Market Intelligence that the company is developing a series of new business lines, including commercial property development and management, and is planning forays into other sectors like logistics, winter vacation resorts, rental apartments, senior living and education. Liu added that the new business development strategy was aimed at capitalizing on emerging market trends and new consumer demand.

"Enterprises must take action to meet the changing living needs of consumers," he said.

Liu also said Vanke will still focus on its core residential development business, and the company has yet to set a proportion target for what the new businesses would account for.